Oil prices are sliding lower as concerns about a global surplus of crude intensify.
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Brent crude oil, the international benchmark, is down 0.45% on Aug. 28 and trading at $67.80 per barrel, while West Texas Intermediate (WTI) crude oil, the U.S. standard, is down 0.44% and trading at $63.87 a barrel as commodities traders fret about overproduction swamping the global energy market.
At the same time, the U.S. government continues to ratchet up pressure on India to halt purchases of Russian oil by doubling an import tariff on goods from the country to 50%. The U.S. says India stopping its imports of Russian crude oil could help end the war in Ukraine.
OPEC+ Production
However, the real worry in the oil market is ongoing production increases by the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Earlier in August, the cartel announced another large production increase starting in September of this year.
OPEC+ has agreed to raise its oil production by 547,000 barrels per day in September, the latest in a series of output hikes that have occurred this year as OPEC+ members try to boost their market share. The increased production and sliding crude prices are pressuring the stocks of oil majors such as Chevron (CVX), Shel (SHEL), and British Petroleum (BP).
Is CVX Stock a Buy?
The stock of Chevron has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 10 Buy and five Hold recommendations issued in the last three months. The average CVX price target of $170.67 implies 7.53% upside from current levels.
